Meant to finally offer relief to India’s citizens, Finance Minister Arun Jaitley has announced that prices of petrol and diesel have been cut by Rs 2.50 per litre. He said that the central government will reduce excise duty by Rs 1.5 while oil companies will absorb the remainder.

In the announcement, Jaitley has also asked state governments to announce a matching reduction in duties and taxes levied by the state, which could see the prices decrease even further. In response, the governments of Maharashtra and Gujarat have also announced a reduction in excise duties. The Gujarat Chief Minister tweeted that it has matched the central government’s reduction, and that petrol and diesel are now cheaper by Rs 5 per litre.

Chief Minister of Maharashtra, Devendra Fadnavis, has also tweeted that the state government will reduce prices of petrol and diesel, with the former now costing Rs 5 less.

The move by the central and state governments will cost the exchequer a significant amount but will provide relief for consumers. Fuel prices have been increasing steadily day by day, owing to the declining value of the Indian Rupee and volatile prices of crude.